Home / Knowledge / News / Textiles / High carry-forward Chinese cotton stocks raise concerns
High carry-forward Chinese cotton stocks raise concerns
27
Sep '12
The high-carry forward Chinese cotton stocks at the beginning of the new Chinese cotton year beginning September 1, 2012 has become a matter of worry and is cause of concern for those in the global cotton trade.

Each of the cotton experts, fibre2fashion spoke to expressed their concerns over this huge carry forward stock, which has surged by an astounding 60 percent from the same time last year.

Unconfirmed reports, but confirmed by two of these experts, indicate that Chinese cotton inventory at the beginning of the new Chinese cotton year, has skyrocketed to 6.718 million tons, up a staggering 59.95 percent from 4.20 million tons from a year earlier.

Mr David Lindsay - General Manager at Australia-based Namoi Cotton Co-Operative Ltd says, “Prices could come under immense pressure if either China does not purchase cotton in the same volumes as it did in the previous season or if it releases its state cotton reserves”.

Mr Ghulam Rabbani a Pakistan based cotton and yarn trader of repute reveals, “The huge Chinese cotton stocks are already depressing cotton prices. Spinners around the world are staying on the sidelines and purchasing carefully, by not stocking but buying on a day-to-day basis”.

He adds, “As per my analysis, China will purchase cotton, but with less interest and at a slow pace. But when prices will ease, they will definitely buy cotton to average out their existing stocks. I fear that the absence of Chinese dragons will drag down cotton prices”.

“However, the two biggest cotton producers and consumers – China and India, will be hurt the most if cotton prices slide down, since both the countries are expected to have a very good cotton crop in the new cotton season”, he wound up by saying.

Mr Vishwanathan – Vice President of Indian Cotton Federation says, “The first impact will be on Chinese cotton purchases in the new season, which we expect to decline. Apart from this, the economic slowdown in the developed countries has impacted exports of textile and apparels from many countries, which has resulted in subdued demand for cotton”. 

“It has also been reported that the cotton crop in the US, India and Brazil is good this season. In January and February, which is the peak cotton arrival period in India, cotton purchases by textile mills in this period too goes down”, he explains.  

Mr Vishwanathan adds, “All these factors could lead to cotton prices gradually falling to a certain extent in the new cotton year 2012-13”.

Mr Dhiren Seth of Cotton Association of India says, “If the Chinese cotton reserves stay as reserves, then I do not foresee any impact on cotton prices. The problem can start only if they start unloading those reserves in the market, since it has the potential to depress prices”.

“Secondly, if China does not purchase cotton as it did in its previous cotton season, then this too could also impact prices. The Indian government may also need to announce higher minimum support prices (MSP) for raw cotton in that case”, he adds.


Must ReadView All

Bangladesh panel to revise minimum wage for garment workers

Apparel/Garments | On 16th Jan 2018

Bangladesh panel to revise minimum wage for garment workers

The Bangladesh labour and employment ministry recently formed a panel ...

Bruckner to supply dry finishing lines for textile project

Textiles | On 16th Jan 2018

Bruckner to supply dry finishing lines for textile project

Bruckner, a producer of high-tech lines for the dry finishing of...

Courtesy: Carrefour

Apparel/Garments | On 16th Jan 2018

Carrefour signs strategic agreement with Showroomprive

Carrefour, the second largest retail chain in the world, has...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search